Turnbull government urged to move swiftly on proposed whistleblower laws

The Turnbull government is being urged to move swiftly to implement stronger protections for whistleblowers after a parliamentary inquiry suggested bounty-style rewards for people who come forward and report information that leads to successful prosecutions of misconduct.

The Joint Parliamentary Committee on Corporations and Financial Services, which held an inquiry into whistleblower protections in the corporate, public and not-for-profit sectors, handed down its report on Wednesday.

It also calls for a Whistleblowing Protection Act, to be introduced by June next year, that protects whistleblowers who can make anonymous disclosures, and offers rewards for information that leads to court-imposed penalties.

The Authority, to operate within the office of the Fair Work Ombudsman, would have the power to investigate reprisals made against whistleblowers and then refer them to the Australian Federal Police for prosecution if they were of a criminal nature, or, to courts and workplace tribunals for non-criminal matters.

The report of Coalition, Labor and Green members held five public hearings and received 75 submissions from a range of stakeholders. It found that current laws protecting whistleblowers in Australia are inconsistent and make it near impossible to protect them from retaliatory action.

"This will put employers on notice that cover-ups will no longer be tolerated, nor will they be able to intimidate and destroy the careers of those who disclose serious wrong-doing that's in the public interest ," said committee member, Senator Nick Xenophon.

"Whistleblowers will be encouraged to come forward without fear of reprisals or losing their jobs. They will be protected not only from their old workplace but also from any action that may be taken against them by a future employer."

Labor MP Andrew Leigh said it had taken almost seven months of expert evidence, "but finally those across the chamber can recognise the value in protecting whistleblowers".

Law Council of Australia President Fiona McLeod says more work needs to be done before bounty-style rewards are offered.Credit:Andrew Meares

"People who are brave enough to speak out about corporate wrongdoing deserve to be rewarded for the risk," he said.

The Finance Sector Union's National Secretary Julia Angrisano said stronger whistleblower protection would help address issues in the finance sector.

"What we have seen in banking over the past few years are a series of worrying scandals that have harmed customers, employees and the standing of banks in the community," she said.

"We rely on whistleblowers to expose unethical behaviour and corporate misconduct when it occurs within the financial services industry."

Ms Angrisano said the FSU supported compensation payments for whistleblowers who expose corporate misconduct. "Whistleblowers have all too often ended up with no jobs, even though their disclosures have assisted authorities and corporations crack down on wrong-doing, she said."

"The proposed Whistleblower Protection Authority will play an important role, assisting finance sector workers who are placed in the difficult position of having to reveal serious problems, even criminal activity like fraud, within the companies they work for."

Law Council of Australia President Fiona McLeod said effective whistleblower protection was critical in promoting integrity, accountability and trust.

"Efforts to stamp out corruption globally, regionally and domestically are to be applauded," Ms McLeod said.

But she said in relation to bounty-style rewards, "further dialogue is required as to whether this will be necessary if the other elements are implemented and work properly".

KPMG's forensic director Lauren Witherdin said the reward system that has been proposed by the Committee is very different to the typical US–style bounty system, and "anyone expecting a bounty bonanza may need to temper their expectations".

"Firstly, the reward would be a proportion of the penalty imposed against the whistle-blower's employer, and currently the penalties here in Australia are far lower than those in the US," she said. "And secondly, the proposed system would include a cap on the maximum reward available to a whistle-blower."

Griffith University's Professor AJ Brown said reforms marked "a historic step" in protecting those who speak out against wrongdoing in the workplace.

Maurice Blackburn employment law principal Josh Bornstein said: "For too long whistleblowers have been punished rather than rewarded for their contribution" and changes should be implemented.

The Australian Institute of Company Directors acting chairman Gene Tilbrook, who is also a director at Woodside Energy, said "stronger protections for whistleblowers will incentivise all companies to establish robust internal whistleblowing systems".

Loading

"Whistleblowers play a critical role in identifying misconduct and should not be the subject of victimisation as a result of their disclosure," he said.